Preferred Supplier Agreement Template for Germany

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Key Requirements PROMPT example:

Preferred Supplier Agreement

"I need a Preferred Supplier Agreement under German law for an automotive parts manufacturing relationship, with strict quality control requirements and minimum monthly order commitments starting from March 2025."

Document background
The Preferred Supplier Agreement is a strategic commercial contract used to establish and maintain long-term preferential supply relationships in the German market. This document is particularly valuable when a company wishes to secure reliable supply channels with favorable terms while ensuring compliance with German legal requirements. The agreement comprehensively addresses all aspects of the supply relationship, including commercial terms, performance standards, and operational procedures. It incorporates necessary provisions from German commercial law (HGB) and civil law (BGB), while ensuring compliance with competition regulations. The document is typically used by medium to large enterprises seeking to optimize their supply chain operations and secure preferential status with key suppliers, making it an essential tool for procurement strategy and supply chain management under German jurisdiction.
Suggested Sections

1. Parties: Identification and details of the supplier and buyer entities, including registration details as required under German law

2. Background: Context of the agreement and the intention to establish a preferred supplier relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Establishment of preferred supplier status, scope of supply, and any exclusivity provisions

5. Ordering Process: Procedures for placing and accepting orders, including any minimum purchase commitments

6. Delivery and Performance: Terms regarding delivery, acceptance procedures, and performance standards

7. Quality Requirements: Quality standards, specifications, and quality control procedures

8. Prices and Payment: Pricing structure, payment terms, invoicing requirements, and price adjustment mechanisms

9. Term and Termination: Duration of the agreement, renewal provisions, and termination rights

10. Warranties and Liability: Warranties provided by the supplier and limitation of liability provisions

11. Confidentiality: Protection of confidential information exchanged between parties

12. Force Majeure: Provisions for handling events beyond reasonable control of the parties

13. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Most Favored Customer: Include when the buyer requires guaranteed access to the supplier's best pricing and terms

2. Innovation and Development: Include for technology or manufacturing agreements where ongoing product development is expected

3. Sustainability Requirements: Include when environmental and social responsibility commitments are important to the relationship

4. Data Protection: Include detailed GDPR compliance provisions when personal data processing is involved

5. Insurance: Include specific insurance requirements for high-value or high-risk supply relationships

6. Business Continuity: Include for critical supply relationships requiring disaster recovery planning

7. Compliance with Laws: Include detailed compliance obligations for regulated industries or products

8. Audit Rights: Include when buyer requires rights to audit supplier's facilities or processes

Suggested Schedules

1. Schedule 1 - Products and Specifications: Detailed list of products or services covered by the agreement with technical specifications

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including volume discounts and price review mechanisms

3. Schedule 3 - Service Levels: Performance metrics, KPIs, and service level requirements

4. Schedule 4 - Quality Standards: Detailed quality requirements, testing procedures, and acceptance criteria

5. Schedule 5 - Ordering Procedure: Detailed procedures for placing and processing orders

6. Schedule 6 - Key Contacts: List of key personnel and escalation procedures

7. Appendix A - Form of Purchase Order: Standard form for purchase orders under the agreement

8. Appendix B - Technical Documentation: Required technical documentation and certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Automotive

Chemical

Retail

Healthcare

Technology

Construction

Industrial Goods

Consumer Goods

Electronics

Pharmaceuticals

Energy

Telecommunications

Food and Beverage

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Commercial

Vendor Management

Strategic Sourcing

Contract Management

Purchasing

Risk Management

Compliance

Finance

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Commercial Director

Purchasing Manager

Contract Manager

Supply Chain Manager

Chief Procurement Officer

Vendor Manager

Operations Director

Category Manager

Strategic Sourcing Manager

General Counsel

Business Development Manager

Supply Chain Analyst

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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